City commissioners still split on change asked for by city attorney.

Published: Friday, February 15, 2013 at 3:39 p.m.

Last Modified: Friday, February 15, 2013 at 3:39 p.m.

LAKELAND | Four commissioners remain skeptical about letting City Attorney Tim McCausland join a traditional pension plan, even though an analyst said Friday there would be negligible impact on the plan.

"This whole concept is one that is counterproductive of what we have set forth with the front-line employees," Commissioner Justin Troller said. "I'm for parachutes, but I'm not for platinum or gold parachutes."

Troller and Commissioners Edie Yates, Don Selvage and Keith Merritt said they still have questions about the new pension plan. Lakeland Mayor Gow Fields and Commissioner Phillip Walker were more supportive of the plan. Commissioner Howard Wiggs was absent from the discussion about the pension plan.

Commissioners spent more than two hours talking about changes to the plan and a new contract for McCausland. He and 22 other city employees are currently in a 401(a) plan, which they chose to join when they were hired. The proposed change would allow any employee who is at least 52 years old and has 10 years of service with the city to exchange the 401(a) plan for the more traditional defined-benefit plan.

Commissioners are considering a plan that would provide McCausland, 62, a yearly payout, starting at age 65, of more than $110,000 if he invests between $800,000 and $1 million of his own money.

It's unclear when commissioners will vote on the issue.

Lowell Walters, a lawyer with Gray Robinson, wrote the proposed change to the pension plan. Walters, who is paid $325 an hour by the city, said it's a misconception that cities and counties are moving away from defined-benefit plans.

The actuary, Jeff Ambrose, agreed, saying other plans he works on allow employees to do what McCausland has proposed. Ambrose was paid $540 for his 1½ hours of conference call participation.

Employees who participate will contribute the full actuarial cost, City Manager Doug Thomas said. Thomas would be allowed to participate next year in the new plan if commissioners support it.

Fields said the numbers look good for the proposed plan.

"It offers more choice and greater fairness at no cost," Fields said. "That has been missing from the public debate."

But Yates agreed with Troller.

"It's like we're moving backwards," Yates said about the defined-benefit plan. Commissioners voted for a new, hybrid plan in 2011. It allows employees to contribute 6.25 percent of their salary to a pension and the option of investing additional money into a 401(a) and receiving a match of up to 5 percent.

The city's employee association president wrote a letter last week complaining about the proposed change.

"Most feel if the stock market had not suffered such a large down turn Mr. McCausland would not be raising this issue, as he has publicly stated," Barb Doster wrote. McCausland has said he was hit hard by the stock market decline in 2007 and 2008.

Doster wrote that if McCausland lived beyond his assumed mortality rate, he would become a burden on the plan.

"The employee population is disappointed that Mr. McCausland would use his position as City Attorney to craft an ordinance, with the initial intent to directly benefit him, in an attempt to undo a perceived personal financial misfortune," Doster writes.

McCausland, who is paid $181,105 a year, was not present during the discussion about the pension plan. However, he was there for talk about a contract he wants. It would be his first contract since he started working for the city in 1992.

Commissioners did not decide when a vote will occur on the contract.

Selvage asked why a contract is needed at this stage in McCausland's career.

John Murphy, a lawyer hired by the city to discuss the contract, said it is a good business practice.

<p>LAKELAND | Four commissioners remain skeptical about letting City Attorney Tim McCausland join a traditional pension plan, even though an analyst said Friday there would be negligible impact on the plan.</p><p>"This whole concept is one that is counterproductive of what we have set forth with the front-line employees," Commissioner Justin Troller said. "I'm for parachutes, but I'm not for platinum or gold parachutes."</p><p>Troller and Commissioners Edie Yates, Don Selvage and Keith Merritt said they still have questions about the new pension plan. Lakeland Mayor Gow Fields and Commissioner Phillip Walker were more supportive of the plan. Commissioner Howard Wiggs was absent from the discussion about the pension plan.</p><p>Commissioners spent more than two hours talking about changes to the plan and a new contract for McCausland. He and 22 other city employees are currently in a 401(a) plan, which they chose to join when they were hired. The proposed change would allow any employee who is at least 52 years old and has 10 years of service with the city to exchange the 401(a) plan for the more traditional defined-benefit plan.</p><p>Commissioners are considering a plan that would provide McCausland, 62, a yearly payout, starting at age 65, of more than $110,000 if he invests between $800,000 and $1 million of his own money.</p><p>It's unclear when commissioners will vote on the issue.</p><p>Lowell Walters, a lawyer with Gray Robinson, wrote the proposed change to the pension plan. Walters, who is paid $325 an hour by the city, said it's a misconception that cities and counties are moving away from defined-benefit plans.</p><p>The actuary, Jeff Ambrose, agreed, saying other plans he works on allow employees to do what McCausland has proposed. Ambrose was paid $540 for his 1½ hours of conference call participation.</p><p>Employees who participate will contribute the full actuarial cost, City Manager Doug Thomas said. Thomas would be allowed to participate next year in the new plan if commissioners support it.</p><p>Fields said the numbers look good for the proposed plan.</p><p>"It offers more choice and greater fairness at no cost," Fields said. "That has been missing from the public debate."</p><p>But Yates agreed with Troller.</p><p>"It's like we're moving backwards," Yates said about the defined-benefit plan. Commissioners voted for a new, hybrid plan in 2011. It allows employees to contribute 6.25 percent of their salary to a pension and the option of investing additional money into a 401(a) and receiving a match of up to 5 percent.</p><p>The city's employee association president wrote a letter last week complaining about the proposed change.</p><p>"Most feel if the stock market had not suffered such a large down turn Mr. McCausland would not be raising this issue, as he has publicly stated," Barb Doster wrote. McCausland has said he was hit hard by the stock market decline in 2007 and 2008.</p><p>Doster wrote that if McCausland lived beyond his assumed mortality rate, he would become a burden on the plan.</p><p>"The employee population is disappointed that Mr. McCausland would use his position as City Attorney to craft an ordinance, with the initial intent to directly benefit him, in an attempt to undo a perceived personal financial misfortune," Doster writes.</p><p>McCausland, who is paid $181,105 a year, was not present during the discussion about the pension plan. However, he was there for talk about a contract he wants. It would be his first contract since he started working for the city in 1992.</p><p>Commissioners did not decide when a vote will occur on the contract.</p><p>Selvage asked why a contract is needed at this stage in McCausland's career.</p><p>John Murphy, a lawyer hired by the city to discuss the contract, said it is a good business practice.</p>